I believe situation offers the opportunity for Pan American Airways to establish itself in Costa Rica and Central America by arranging for service of one amphibian plane between San José and Limon. I believe Costa Rican Government would be receptive to such a proposal. Local representative of above-named company is taking matter up with his principals. I hope Pan American Airways or the other American company will establish this service before the Scadta Corporation or other nonAmerican interests become active. Should the service be established it will be necessary to act without delay. DAVIS 810.79611 Pan American Airways, Inc./165: Telegram The Minister in Costa Rica (Davis) to the Secretary of State SAN JOSÉ, December 6, 1928-11 a. m. [Received 1:50 p. m.] 94. My 91, December 4, 9 a. m. There are indications that non-American interests are active. If Pan American Airways desires to take advantage of this opportunity it must act immediately, instructing local representative by cable to negotiate for provisional service and advising him when plane will be available. Should plane be shipped it might be best to assemble it in the Canal Zone where mechanics and equipment are available. Negotiations here should be completed, however, before plane is shipped in order to avoid possible complications. DAVIS 810.79611 Pan American Airways, Inc./169: Telegram The Secretary of State to the Minister in Ecuador (Bading) WASHINGTON, December 8, 1928-10 a. m. 30. Pan American Airways, Incorporated, informs Department Mr. Harold R. Harris, General Manager Peruvian Airways Corporation will assist Mr. Otto Berg von Linde, representative of W. R. Grace and Company, to apply for operating concession in Ecuador similar to concession recently granted to Scadta. Please render all possible and proper assistance. Department is much interested in the development by American interests of commercial aviation service between the United States and Latin America. KELLOGG 810.79611 Pan American Airways, Inc./171: Telegram The Secretary of State to the Minister in Costa Rica (Davis) WASHINGTON, December 8, 1928-7 p. m. 48. Your 91, December 4, 9 a. m., and 94, December 6, 11 a. m. The Pan American Airways is shipping a plane at once which will be assembled at the Canal Zone and should reach Costa Rica by the 25th of this month. You may in your discretion use this information to further the interests of the American company. KELLOGG 810.79611 Pan American Airways, Inc./172: Telegram The Secretary of State to the Ambassador in Chile (Culbertson) WASHINGTON, December 11, 1928-2 p. m. 89. The Department is informed that Pan American Airways, Inc. and W. R. Grace & Company are asking the Chilean Government for a concession for commercial air mail service from Arica south in the name of the Chilean Airways Corporation, an American company, and are submitting definite written proposition. KELLOGG 810.79611 Pan American Airways, Inc./176: Telegram The Secretary of State to the Minister in Costa Rica (Davis) WASHINGTON, December 12, 1928-noon. 50. Lieutenant Donald Duke has been granted leave in order to fly a plane from Colon to Port Limon for delivery there to the Pan American Airways. Please request the appropriate authorities for permission for flight over Costa Rican territory and landing at Port Limon. KELLOGG 819.79611 Pan American Airways, Inc./177: Telegram The Secretary of State to the Minister in Costa Rica (Davis) WASHINGTON, December 12, 1928—4 p. m. 51. Department's 48, December 8, 7 p. m. Please render all proper assistance to Mr. Frank Whiting, representing the Pan American Airways, Inc., in his negotiations for the establishment of the San Jose-Limon air mail service. KELLOGG 810.79611 Pan American Airways, Inc./190 The Chargé in Honduras (Johnson) to the Secretary of State No. 757 TEGUCIGALPA, December 14, 1928. [Received December 27.] SIR: I have the honor to report that Mr. John D. MacGregor representing Pan American Airways, Incorporated, returned early this week to Tegucigalpa and resumed immediately his negotiations for a contract with the Honduran Government. He has had interviews with President Paz, who appears to be entirely favorable to the proposal, and with the Minister of Fomento, who under direction of the President will celebrate any contract that may be agreed upon. Mr. MacGregor has informed me that so far he sees no reason to suppose he will encounter any serious difficulty in reaching an agreement with the Government. After Mr. MacGregor had seen President Paz, I talked with him myself and referred to his previous conversations with Mr. Summerlin in regard to the proposals of Pan American Airways. The President reiterated the favorable opinions he had expressed to Mr. Summerlin and stated that he had instructed the Minister of Fomento to proceed without delay in the negotiations with Mr. MacGregor for a definite agreement. The Legation will keep the Department informed promptly of any developments in this matter. I have [etc.] HERSCHEL V. JOHNSON 810.79611 Pan American Airways, Inc./183: Telegram The Minister in Costa Rica (Davis) to the Secretary of State SAN JOSÉ, December 16, 1928-11 a. m. [Received December 17-12:33 a. m.] 99. Department's 50, December 12, noon. Permission granted. DAVIS 810.79611 Pan American Airways, Inc./184: Telegram The Secretary of State to the High Commissioner in Haiti (Russell) WASHINGTON, December 17, 1928-7 p. m. 88. The Department approves of the suggestion in the last paragraph of your despatch 1327, November 28. KELLOGG 810.79611 Pan American Airways, Inc./189: Telegram The Chargé in Honduras (Johnson) to the Secretary of State TEGUCIGALPA, December 24, 1928—5 p. m. [Received 9:45 p. m.] 147. MacGregor, representative Pan American Airways, informs me he signed today with Honduranean Government a contract in terms substantially as proposed by the company. JOHNSON Huff-Daland Dusters and Keystone Airplane Corporation 810.796/3a: Telegram The Secretary of State to the Ambassador in Peru (Poindexter)" [Paraphrase] WASHINGTON, January 19, 1928–3 p. m. 4. Within a year certain American aeronautical interests are planning, with the encouragement and approval of the Government of the United States, to interest themselves in the transportation of passengers and mail along the western coast of South America. For the success of their endeavors, it is important that the Government of Peru grant no exclusive concessions to foreign aeronautical interests to operate in Peru, and it is highly desirable that the Gorernment of Peru grant no concessions at all to foreign interests for air transport in Peru until the American companies above mentioned have had the opportunity to develop their projects, inasmuch as any concessions to operate air lines in Peru might serve in effect to prevent American companies from establishing a coastal air line. As you know, the Government of the United States has always felt very strongly that the policy of the "open door" in such matters is best calculated to benefit all concerned. If, in your opinion it is timely to do so, discuss this matter confidentially and informally with the President of Peru, and intimate to him that the Government of the United States would be pleased to see American aeronautical interests and Peru eventually joined in the development of aviation on the west coast of South America, and that the Government of the United States would appreciate it if the field would be kept open pending maturing and presentation of these projects. The American interests contemplate some form of operation which as now planned would associate the Naval Air Service of Peru in the work. The same, mutatis mutandis, on the same date to the Minister in Ecuador as telegram No. 3. A bill to authorize the Government of the United States to give financial assistance to air lines to Central and South America is now pending in Congress. KELLOGG 810.796/4: Telegram The Ambassador in Peru (Poindexter) to the Secretary of State LIMA, January 21, 1928—1 p. m. 4. Your 4, January 19, 3 p. m. not clear; have cabled for corrections. Please advise if the phrase "foreign interests" is intended to cover all foreign interests in Peru or only non-American interests. Also the phrase "American companies above mentioned," none appear to be mentioned in your cable. It would be an aid in presenting the matter if the companies referred to were known. Some days ago I presented to President Leguia Mr. Woolman, representing an American company, Huff-Daland Dusters. This company already has large aviation contracts in Peru. Woolman also represents the Keystone Aircraft Corporation. This last company made the planes now in use in the recently established air line between Lima and Iquitos. Woolman proposed to the President to establish air mail service between Lima and Panama. The President agreed to entertain the proposition. Since then the President agreed to place the matter in the hands of Grow, former American naval officer, now in charge of Peruvian naval aviation. Grow established the Lima-Iquitos service and now proposes to give the contract for Lima-Panama service [to?] Woolman's principals. Please advise if your cable is intended to oppose the Woolman proposition. German interests are on the ground and working in various disguises for this concession. POINDEXTER 810.796/4: Telegram The Secretary of State to the Ambassador in Peru (Poindexter) WASHINGTON, January 25, 1928-7 p. m. 6. Your 4, January 21, 1 p. m. 1. The phrase "foreign interests" is intended to cover all interests in Peru not American or Peruvian. 2. The American interests referred to in the Department's 4, January 19, 3 p. m., are the Keystone and Huff-Daland Dusters, who are connected with Hayden Stone (Financial) and Pan American Airways, and possibly eventually others. 3. Give all possible and proper support to Woolman. KELLOGG |